Posted on: 05. 15. 19
Geopolitics has had an impact on how the oil and gas industry operates on a global scale. As whole geopolitics are what create the risk and opportunity involved in our industry. The term covers several continuing industry issues that include:
- Security
- Global Economics
- Market Uncertainty
- Exchange Rate Fluctuations
- Global Diplomacy
Throughout history, there have been many instances where geopolitics have vastly impacted the United State’s oil and gas market. Find out about these challenges our industry has faced and how our reliance has prepared facilities to face history during its inevitable repeat and why this upcoming election is more important than ever for the oil and gas industry.
The Yom Kippur War
The Yom Kippur War occurred in 1973 between Isreal and numerous Arab states. This event was known as the first official “oil crisis” due to the embargoes placed on the product for countries that stood as allies for Israel. This embargo, put in place by the Organization of Petroleum Exporting Countries (OPEC) was termed as an oil weapon and vastly increased the priced of crude oil by the barrel.
Iranian Revolution
Shortly after the Yom Kippur War, the second oil crisis arose during the Iranian revolution from 1978 to 1981. This crisis doubled oil prices and in the United States, made the oil prices range between $50 to $100 per barrel at the time of the conflict. What makes this instance unique is that unlike the Yom Kippur War, the demand for oil and gas fell as technology in the industry advanced. This began the ultimate decline in prices throughout the following years.
Second Gulf War
After 9/11, and the rise of liquefied natural gas, the United States intervened in the conflicts surrounding the Middle East at that time. This resulted in a foreign occupation that wreaked havoc on the nation’s production infrastructure. Fortunately, the efforts of OPEC helped to prevent oil prices from skyrocketing during this point in time. However, there was still a significant increase in prices cited around 2004.
Pro-Gas Provides Sites with Equipment Helping to Keep Market Costs Down
Issues like the United State’s subprime crisis and other geopolitical events can create problems within both national and international oil and gas prices. Pro-Gas, LLC knows these situations ultimately leave pricing out of the hands of producers. That’s why we make every effort to help keep the costs for well creation and production down. Our equipment has helped facilities throughout the nation accomplish their goals reasonably, even amidst political strife. If your drilling site is in need of affordable equipment that produces results, contact us today to find out more about our offerings!
